Nike is looking to recapture its past magic. Investors cheered as the shoe giant announced Thursday it had hired company veteran Elliott Hill out of retirement to become its next CEO, with the stock jumping 8% in extended trading Thursday and remaining up from the previous day’s close on Friday morning. Hill will replace the retiring John Donahoe, whose tenure had a promising beginning before an ambitious direct-selling strategy opened the door to toughening competition and flagging sales.
Donahoe was lauded for deftly leading the shoe giant through the COVID-19 pandemic, and this was reflected at the time in the company's share price. After Donahoe took the helm in January 2020, Nike's stock more than doubled, peaking at an all-time high of $177.51 in November 2021. It’s been a steep fall from grace since, however, with the stock down 24% year-to-date and hovering just above the $80 mark at Thursday’s close. As of Friday morning, the stock was up 6% and trading just below the $86 threshold.
